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Course Outline

  Due diligence for mining projects, why is it necessary?

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  • Historical risk review
  • What are the main causes of mining project failure
  • Case studies and discussions (including Australia, China, India, Indonesia, Kazakhstan, Kyrgyz Republic, Laos, Mongolia, the Philippines, Vietnam)
  • Examples include gold, iron ore, copper, manganese, nickel, industrial minerals, uranium and coal

Comparisons of resource and reserve estimation methodologies and classification systems

  • Australian JORC Code
  • China and Chinese classifications
  • China compared to JORC
  • Canada, South Africa, UK, USA

Laptop exercise
Resource estimates

Technical review of mining projects

  • Technical evaluation guidelines
  • The process of due diligence and evaluation of risk in mining projects
  • Environmental and social aspects that need to be considered
  • Risk assessments

Technical-economic modelling

  • Introduction to modelling mining projects
  • Model structure
  • Assumptions, building in flexibility
  • Reserves, resources and mining schedules
  • Metal production and revenue calculations
  • Cost schedules

Operating cost and capital cost estimation methods

Laptop exercise
Operating and capital cost

Valuation of mining projects

  • Discounted cash flow models
  • Sensitivity studies
  • Relationship between NPV and market value
  • Examining other valuation methods
  • Worked example

Laptop exercise
Valuation sensitivity

Valuation of exploration tenements

  • Various methods are presented, including a geological risk-based approach
  • Presents concepts of Target Value and Expected Value
  • Importance of Materiality, Competence, Independence and Transparency
  • Calculation and comparison of values at each stage of discovery and development
  • Comparison and benchmarking of various methods
  • Example case studies are presented

International valuation codes and best practice

  • The Valmin Code
  • The CIMVAL Code
  • The SAMVAL Code
  • Comparison of the codes

At the conclusion of the course, you will understand industry best practise in all the main areas of mining project review.

You will be able to put together a program for a due diligence program for a mining project and discuss the project with technical staff, non-technical staff, company executives at all levels and potential financiers to the project.


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